November 27, 2011

Insolvent Nations Should Leave EU?

The Hill had an opinion piece on Friday that argued that countries Greece, Portugal and Italy should leave the E.U.  That's an interesting proposition, but it's also illogical.  The people the article purports to help are the one it will hurt most.  The people it blames would be the ones to most benefit from the move.


In the article, the author also neglects to mention that the austerity measures being imposed by the centralized EU are a necessity due to the prodigal spendthrift ways of the insolvent nations.  Without this imposition what other choice do those nations have to solve their socialist debt-riddled economies?  Leaving does not magically make the debt go away.


The author's main point is encapsulated here;
A new generation needs to take hold of this here, there and everywhere, before their future is gobbled up. The laws of nature are hard and fast: When times get tough, the strong economically will dominate the weak and in the EU, that means Germany. Greece, Italy and Portugal should head for the doors and strive to find their souls again. Form a like-minded Mediterranean alliance perhaps. But leave while it is still possible.
The point is valid - those countries will have economic solvency imposed on them from outside because they can't do it themselves.  I'm pretty sure nobody would be happier to not have to bail out those nations than the Germans.  But the fact remains that without German assistance those countries are going to fail.  They will not impose their ow austerity.  If they are capable of it they would have already done it.

Another problem I have with the article is the word dominate.  This is not Nazi Germany we are talking about, it is a solvent, responsible partner in an economic alliance.  The characterization of German domination is unfair.  That they might end up as the richer partner in the alliance is a moot point - they are already richer and would be so in or outside of the alliance.  These debtor nations may indeed end up as nations of gardeners and porters for the healthier economies, but that is hardly Germany's fault, it's their own.  If the countries were to get their houses in order 

I'm not a big fan of the E.U. - it's a monster. It's intrusive, unwieldy overly regulatory in nature and often  directionless and without a unifying vision other than that of it's own existence.  The bailouts from Germany don't help Germany other than keeping a pointless union intact where it can exert from influence.  What's the point in that?  Yes the E.U. should have a few less members, the very self-indulgent nations who the author at The Hill thinks setting themselves 'free' will solve all their problems.
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